If you’ve been thinking of buying a home but keep putting it off because of a variety of concerns have no fear. Although the process may seem riddled with riddled with potential obstacles many are easily overcome by doing a little research.
By doing your own due diligence and become educated about the specifics of the home buying process you will soon see the path to home ownership is hard as difficult as it first looks.
I Need To Save For A Huge Down Payment – This is not always the case and the size of the down payment needed is based upon the lender and the type of loan you get. There are options out there that offer mortgages with down payments from 20% to zero.
Some government loans, especially VA loans (for Veterans) and some FHA loans even offer incentives to help new home buyers get into their home. These include rolling over fees involved that you normally would have to come up with immediately at your closing in order to purchase a home. The size of your down payment depends upon the loan, the lender, your credit, the type of loan you get, and other factors that you should discuss with your Buyer’s Agent.
If you have a less than perfect credit history there are still options from lenders that allow you to obtain two loans at once; one loan is a temporary solution to finding enough money for a down payment. Some lenders offer a first mortgage which is valued at approximately 80% of the total loan amount and a second mortgage which is for the remaining 20% of the loan value.
Generally the second mortgage is a smaller mortgage that is offered with a faster pay-off schedule and because the loans can be a little on the high side as far as interest rates you can often refinance within a few years to pull everything together. While these types of loans aren’t available for everyone and in every area, your agent should be able to guide you to what may or may not be available to you.
Mortgage Payments Will Make Me House Broke – In many cases mortgage payments are often lower than what the typical rent payment is in most areas. Sit down and figure out a budget and then give that budget to your realtor. Ask them to help you find a home that, with taxes and insurance, will fall within your affordability range.
You will be quite surprised how many homes are out there that will end up costing you less or the same as what you’re currently paying to rent the home you’re in. Add to this that you, as a new home owner, are building equity and value in your own property instead of your landlord’s! It doesn’t hurt to find out what the amount you’re paying now for your house or apartment can buy you in terms of your own home instead of “renting” a home.
My Credit Rating Isn’t High Enough – While a lot does depend upon credit ratings and in the current market lenders are much stricter with lending money to those who are “risks” there are other options out there. While your Buyer’s Agent is not a miracle worker, if they’re experience they’re going to be able to come up with some unconventional options for financing.
There are options where sellers are willing to help the buyer out, depending on how badly the seller needs to sell their home. There are also lenders who specialize in hard to finance customers and although they are most often lending at a higher interest rate they also can offer re-financing after you’ve proven your ability to maintain good credit with them after a few years of consecutive, on-time mortgage payments.
It’s Always Worth A Try
Don’t quit before you even try. Call a Buyer’s Agent and find out the facts. Work with them to see what options are available to you. There are various governmental programs that have been made available especially for new home buyers. Your agent should be able to guide you from helping you with your budget and the home you can afford to what lender’s to approach or programs to look into in your area.
If you don’t at least try to see what your options are you will never know what you could have. You may be surprised and end up being a home owner sooner than you ever thought possible.
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